New regulations have been issued concerning virtual currencies. On February 6, a joint notice was released by multiple authorities including the People's Bank of China, the National Development and Reform Commission, and the Ministry of Industry and Information Technology, titled "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies and Other Areas." This notice serves as an extension and refinement of a previous document issued in 2021. It reiterates that virtual currencies do not possess legal status equivalent to fiat currency and that related business activities constitute illegal financial operations.
Industry insiders indicate that recent speculative activities involving virtual currencies and real-world asset tokenization have disrupted financial order and endangered public asset security. The new regulations aim to enhance oversight, mitigate associated risks, and safeguard national security and social stability.
The notice largely follows the structure of the earlier document, comprising six sections with nineteen articles. Key points include clarifying the nature of virtual currencies and related activities, improving coordination mechanisms between central and local authorities, and specifying requirements for risk monitoring, prevention, and disposal. It also emphasizes strict supervision of domestic entities and their controlled overseas counterparts engaging in virtual currency activities abroad, strengthens organizational implementation, and outlines legal responsibilities.
The regulatory stance is explicitly stringent, reaffirming that virtual currency-related operations are illegal. Activities such as exchanging fiat for virtual currencies, trading between different virtual currencies, acting as a central counterparty, providing intermediary services, and conducting token issuance are strictly prohibited. Regarding stablecoins, the notice states that those pegged to fiat currencies effectively perform some functions of legal tender, impacting monetary sovereignty. It stipulates that no entity, domestic or foreign, may issue renminbi-linked stablecoins without official approval.
In 2025, regulatory authorities repeatedly emphasized their position. For instance, in October 2025, the PBOC governor noted that while stablecoins are emerging, they remain in early development stages and pose risks such as inadequate customer identification and anti-money laundering measures, potentially exacerbating global financial vulnerabilities. Later that year, a multi-departmental meeting reaffirmed the commitment to crack down on virtual currency speculation and related misconduct.
The notice also highlights the need for robust inter-departmental collaboration to combat illegal activities effectively. It addresses the misuse of concepts like stablecoins, worthless tokens, and real-world asset tokenization for illicit purposes such as fraud and money laundering. Additionally, it reiterates the prohibition of virtual currency mining within the country, assigning the National Development and Reform Commission to lead ongoing efforts to identify and eliminate such operations, with provincial governments bearing primary responsibility for enforcement in their jurisdictions.